Beijing's top official in the SAR, Jiang Enzhu, said yesterday the SAR economy would revive if emphasis was placed on economic development and social stability. The Beijing's Liaison Office director said the economy was undergoing a new adjustment period. The impact made by the Asian financial turmoil had yet to be eliminated and the global economic depression had brought about new difficulties and put pressure on Hong Kong, Mr Jiang said. 'Facing such circumstances, the most important thing of all is to evaluate the situation and maintain confidence,' he said. Mr Jiang's remarks came after Financial Secretary Antony Leung Kam-chung hinted earlier that economic instability worldwide may force the Government to re-adjust its economic growth forecast. Apart from the existing competitiveness of the SAR's economic system, Mr Jiang said closer ties with the mainland were one of Hong Kong's major strengths. The mainland's rapid and continuous economic development would provide Hong Kong with unprecedented chances for development. Mr Jiang said Beijing noted that the SAR Government had been looking for ways to step up co-operation between Hong Kong and Guangdong. The territory's business sector was also keen to grasp business opportunities brought about by the mainland's impending entry to the World Trade Organisation by taking part in development in the western region, he said. 'We have every reason to believe, as long as the focus is put on economic development and maintaining social stability, that Hong Kong will be able to revive its life and vitality,' he said. Mr Jiang was addressing a ceremony on the establishment of an 840-member committee, led by Chinese People's Political Consultative Conference vice-chairman Henry Fok Ying-tung, to plan celebration activities to mark the People's Republic of China's 52nd anniversary on October 1. The committee will spend $1.5 million organising a cultural variety show to be held at the Hong Kong Coliseum on National Day.